Purchase-mortgage production
could reach $1.183 trillion dollars
in 2018, according to forecast data
released by the Mortgage Bankers
Association this past January. This
would be a 6. 6 percent increase
over the estimated $1.11 trillion in
purchase mortgages originated in

2017. Home prices should continue
to increase nationwide this year as
inventories remain low and demand
remains high, which will help drive
purchase-production numbers
above 2017 levels.

Home-price increases could be
tempered by rising interest rates
and renewed construction at the
lower end of the residential market, however, according to some
experts. A Zillow survey of economists and housing experts projects
a 4.1 percent increase in home
prices this year. That compares to
an estimated 5. 5 percent increase
recorded in 2017, according to
Realtor.com data. Variables that
could affect the mortgage market
forecast for 2018 include the tax
overhaul package enacted as 2017
came to a close and the effects
of any mortgage deregulation
legislation that might be adopted
this year. ( WM)